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<x-rich>dear traders,
speaking of currencies (a field in which I'm not fully involved, and then I beg your pardon for any eventual nonsense I state), I noticed how similar the BP chart looks with respects to the italian stock market index, aka Mibtel.
Watch closely tha attached chart, showing the British pound on the upper side, and the Mibtel index on the lower side. In both cases, after a prolongued decline (from june to the end of july as regards the Mibtel Index, and for the entire month of january as regards the BP), both experienced a rally (from 1 to 2); in both case the market was too weak to go over too much, and then we assisted to a triangular-like formation (points 2-3-4), after which Mibtel Index and BP marked a new low (5) in divergence with the previous one. This time was the right time for the true rally, and in fact both BP and Mibtel overcame the previuos high, at point 2 (6). The analogy continue: both formed a 3-month wedge formation (delimited by points 6-7-8-9-10), then a new correction, just a little below point 10 (11), range contraction, and then... the explosion! with volatility to the heaven and all-time high! The same Mibtel proportion, applied to the pound, would lead to 177 first, and 185 then. After that...I don't know. We'll see how the italian market develops and then talked about BP again. If this analogy will still remain in effect!
ciao!
</x-rich>
Attachment Converted: "c:\eudora\attach\Bp_mib.gif"
<x-rich>
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<bold>Gaetano Arnaldo Evangelista</bold> - BARI (Italy)
E-mail: ageitaly@xxxxxx
URL: http://www.geocities.com/wallstreet/8492
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